Applying for Government Non Recourse Loans

Whether you’re trying to get refinancing for your apartment building or you intend to acquire an assisted care facility or nursing home, government non recourse loans can provide you with the financing that you need. Compared to non-government lenders, these types of loans are more readily available despite market volatility. These loans are offered by the federal government and are administered through the FHA or the Federal Housing Administration.

Where a federal non recourse loan may be used

There are many uses of a government funded non recourse loan. Whether you’re looking into a property for profit or non-profit purposes, non recourse loans can help you in the acquisition, new construction, refinancing, or rehabilitation of a property.

This type of financing may be used for the new construction of multifamily home parks, apartments for profit or non-profit use, nursing homes and assisted living facilities, and acute care facilities or hospitals. These government loans may also be used in the rehabilitation of apartments, rehabilitation of immediate care homes, and expansion or rehabilitation of nursing homes and senior citizen housing facilities. Non-recourse loans from the government are also used for refinancing purposes. These may be used to refinance existing mortgages, in order to lower interest rates and other associated costs.

Further information on the non recourse financing

Non recourse financing is a type of financing wherein the borrower is not held personally liable for his or her debt. Normally this type of financing is in the form of a mortgage. The property serves as collateral or security for the loan. A non-recourse mortgage may be taken out through commercial lenders or through government financial agencies. Since you will not be signing as a guarantor on your mortgage, the risk and liability is reduced. Whether you plan on refinancing an existing property, acquiring a commercial facility, or rehabilitating an apartment complex, a government non recourse loan can provide you with the financing that you need.

The attraction of government loans

Government non recourse lenders have their unique advantages compared to most private lenders. Most private lending agencies are normally affected by market volatility and may not be able to offer the best financing terms. During a recession, for example, private lenders may have to limit their lending facilities, and will have to raise interest rates to recoup their losses. However, in the case of government-assisted lending, market volatility poses a very minimal risk. Thus, it will be easier for you to obtain the financing you need, no matter what the current economic environment is.

It is important however to learn more about non-recourse lenders prior to your actual application. Some lenders may offer more attractive non recourse loan rates than others, or they may offer you a better over-all deal. Government loans do have their advantages, especially during times when unpredictable market changes occur. Since these loans are non-recourse, investment risk is minimized.